Investing.com - The Japanese yen weakened smartly in early Asian trade on Monday while the Australian dollar gained as investors eyed central bank remarks ahead.
USD/JPY traded at 107.20, up 0.29%, while AUD/USD changed hands at 0.8758, up 0.15%. EUR/USD traded at 1.2742, down 0.14%.
Reserve Bank of Australia Assistant Governor Christopher Kent speaks at 2330 GMT, while the Bank of Japan releases remarks by Governor Haruhiko Kuroda at 0030 GMT.
The BoJ also releases its third quarter regional economic report at 0500 GMT.
Last week, the dollar gained ground against the euro and the yen as upbeat U.S. economic reports eased concerns over the outlook for the recovery, after a week of volatile trading, fuelled by fears over a slowdown in global growth.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.12% to 85.42, but still ended the week lower, its second consecutive weekly decline.
The greenback was boosted after a report showed that the University of Michigan’s consumer sentiment index unexpectedly rose.
Another report showed that housing starts rose more than expected last month, bolstering the outlook for the sector.
The data reinforced expectations that the Federal Reserve will raise interest rates in the second half of 2015.
The dollar fell against the other major currencies on Wednesday, touching a one month low against the yen and a three week trough against the euro amid a selloff sparked by fears that slower global growth would act as a drag on the U.S. economy.
Dovish comments by central bank officials on Friday also helped ease investor jitters over slowing growth in major economies.
Bank of England chief economist Andy Haldane that rates could remain lower for longer and warned that global economic conditions have worsened.
On Thursday, European Central Bank official Ewald Nowotny said the bank still has leeway for more action to address slowing inflation in the euro area and added that quantitative easing would start as soon as December.
In the week ahead, China and the U.K. are to release preliminary data on third quarter economic growth, while the euro zone is to release preliminary data on private sector activity.
The U.S. is to release data on consumer inflation, as well as reports on both existing and new home sales.
On Monday, Germany’s Bundesbank is to publish its monthly report. Canada is to release data on wholesale sales.